After gaining a good grasp on their stock market portfolios, and their home equity some investors may look for alternative assets such as artwork or cryptocurrency. Due in part to websites like Vinovest, wine is one alternative asset class that is gaining traction.
Vinovest is a website that makes fine wine investing easier by allowing you to add vintages to your collection based on recommendations from top sommeliers. Vinovest also takes care of the time-consuming work of validating and storing your wines.
If you’re interested, this Vinovest review can help you decide if this is the right investing platform for you.
What Is Vinovest?
Anthony Zhang and Brent Akamine created Vinovest in Culver City, California, in 2019. The company is actively seeking funding from a variety of individuals and capital management firms.
Vinovest differentiates itself as an investment option by allowing investors to acquire wine and hold it as an asset in the expectation that its value would increase. The company positions itself as a solution for investors to bypass the traditional gatekeepers associated with wine investing by enabling “ordinary” people to purchase and store bottles of wine.
Additionally, Vinovest confirms the legality of its wine investments, safeguards against bottle breakage, and supervises the wine’s storage.
Who Can Open An Account With Vinovest?
You must be at least 21 years old and a resident of the United States to open an account with Vinovest. This is the legal drinking age in the United States, and you are buying real alcohol when you buy Vinovest. You may also be asked to provide confirmation of identity, such as a photocopy of your driver’s license.
You’ll also need to offer a valid funding source. Vinovest accepts credit cards, bank transfers, paper checks, wire transfers, and Bitpay cryptocurrencies as forms of payment.
Vinovest is expected to appeal to investors with a moderate to high-risk tolerance and a desire to invest in alternative assets. Examine your portfolio objectives and long-term investing strategy before beginning to invest in wine with Vinovest.
How Does Vinovest Work?
Vinovest enables you to invest in wine without having to hunt for and purchase individual bottles. It’s one approach to begin learning how to invest in alternative assets without needing to make a large initial investment.
Vinovest uses wine professionals to ascertain which vintages are likely to appreciate in value and then acquires and keeps those bottles. It purchases wine at a fraction of the retail price through its relationships and memberships. Vinovest takes pride in selecting globally varied investment-grade wines with the potential for long-term appreciation in value.
If you want to invest in wine through Vinovest, the company will allocate bottles and manage storage for you. The bottles are solely yours. There are several wines available; Liv-ex (The London International Vintners Exchange) maintains a comprehensive database with information on over 565,000 distinct vintages. However, this is where Vinovest comes in: part of what Vinovest does is assist you in determining which wines to keep in your portfolio.
Vinovest offers three distinct price structures, each of which provides access to a distinct portion of the wine market:
Standard: A $1,000 minimum commitment is required, and your portfolio’s wines are selected using an algorithm. You will continue to have access to fine wines kept in locations throughout the world. This level is subject to a 2.85 percent annual management fee charged by Vinovest.
Premium: To be eligible for this program, you must invest a minimum of $50,000. This provides you with access to a personal investment portfolio advisor, as well as the opportunity to customize the algorithm’s decisions. Additionally, wine tastings and other activities are provided. Annual management costs are 2.5 percent at this level.
Grand Cru: For $250,000, you can gain access to rare wines as well as Vinovest’s wine advisory board, which consists of wine directors, master sommeliers, and winemakers. Additionally, you’ll save money, as the annual fee is only 2.25 percent.
Essentially, once you’ve invested, you’ll be offered bottles from cases. You can keep them for as long as you like. Vinovest enables you to sell your wine at any time and takes care of the transaction. It indicates that the majority of bottles of wine should be consumed within two to three years, but that some wines can be stored for up to twenty years.
Additionally, you can have your wine delivered to your residence. You may even sip the wine if you choose. Simply ensure that you reside in an area where receiving wine shipments is legal.
It’s worth noting that the bulk of Vinovest wines are stored in Europe. If you opt to have your wines delivered to your location, you will be responsible for any applicable taxes and customs fees. Bear in mind that if you sell your wines for more than they cost, you may be subject to capital gains taxes.
Vinovest does not offer a wine list for investment purposes. Rather of that, the system assigns your bottles to the Standard level. At a higher level, you can seek assistance in picking wines that align with your own financial goals and portfolio interests. However, unless you have the Grand Cru plan, you will be unable to taste the world’s most exclusive wines.
As Vinovest does not yet have an app, portfolio management is limited to the website. If your mobile device includes a browser, you can access the website. According to the company, Vinovest is developing an app.
Pros and Cons of Vinovest
Vinovest chooses and stores wine for you.
Wine is available at a discount from retail prices.
Wine storage insurance protects you.
A $1,000 down payment is required.
There is no customization until you pay a minimum of $50,000.
If the wines are liquidated within 60 days of the account’s initial purchase, there will be an additional charge.
How Much Can You Earn from Vinovest?
As with any investment, the amount you can make is governed by the item and the time period involved. Returns on wine are influenced by the wine’s rarity, the vintage’s available supply, and demand for the vintage. Vinovest evaluates profitably selling wines depending on their maturity in the wine market and the likelihood of consumption.
Despite the fact that wine is an alternative asset class, wine prices are regarded to be less volatile than gold or real estate investments. According to Vinovest, fine wine has delivered annualized returns of 13.6 percent over the last 15 years. It even tracks the performance of the world’s greatest Burgundy, Bordeaux, and other wines via the Vinovest 100 Index.
Bear in mind, however, that a track record of past performance does not guarantee future results. When you invest in wine, you run the risk of losing money. Prior to introducing wine into your portfolio, conduct a thorough analysis of your objectives and strategies.